Irs liquidating

29-Jul-2020 06:39

The money raised from the sale is then applied to the tax debt that you owe to the IRS.

The goal of seizing assets is to satisfy the debt as quickly as possible since you failed to pay it off yourself.

In a recently issued private letter ruling (PLR 201731008), the IRS ruled that a corporate taxpayer had not adopted a plan of liquidation until after certain steps were completed in an internal restructuring that resulted in the to-be-liquidated corporation being wholly owned by the distributee parent.

Unlike other types of creditors, the IRS can simply begin garnishing your wages and even take a higher percentage than allowed by other bill collectors.

Further, quitting your job or not working altogether will not excuse you from having to repay your tax debt.

In fact, even if you are unemployed, the IRS may find other sources of income to seize to pay off what you owe.

It can garnish sources of income like: It cannot legally seize money that you must pay in back child support.

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It also cannot lay claim to money that you receive from Social Security disability payments.

The IRS can seize any asset that you do not need for your basic survival and shelter.